Sunday, April 14, 2024
HomeReal Estate5 Key Steps for Successful Real Estate Investment in Dubai

5 Key Steps for Successful Real Estate Investment in Dubai

Real property in Dubai Sport City, UAE, and other promising districts of the metropolis attract investors and end-users. The local market is evolving rapidly. Housing prices are rising, as is the return on investment (ROI). In the first quarter of 2022, record-high numbers are the main evidence of the investment attractiveness of Dubai units.

However, this does not mean that anyone who invests in Dubai real estate can expect a huge return. Strategic planning skills are required to profit from the local market. Below are five key steps for successful and wise investments.

An in-depth understanding of the market

Housing investments without market understanding and knowing its directions, types of occurring trends, future development, etc., will be a big mistake that can cost a pretty penny. Therefore, it is good to try to understand the potential moods and conditions as well as possible that an investor might face.

Learning about different property types and their value

The UAE real estate market offers a broad range of residential properties. They vary in price, ROI, architectural design, and other different factors. It is important that the buyer be aware of them and their value before entering the market and making investments.

As a rule, local accommodation is divided into two main categories:

  1. Ready-made units. These, as the name implies, are fully completed and ready to move in.
  2. Units under construction (or off-plan units). These are still under development. Therefore, they are more affordable than ready-made options.

According to recent statistics, finished residential units account for about 58% of the total volume of buying and selling transactions closed in the first quarter of 2022. This shows that this housing dominates the city’s market. However, since the prices of off-plan units are lower, they constitute a better choice for homebuyers on a budget.

Real estate is also subdivided into different types based on its structure and configuration. For example, the most popular options in the Dubai market are:

  • apartments;
  • villas;
  • townhouses;
  • penthouses;
  • duplexes.

Also, buyers can decide between land plots.

Among the types of properties mentioned above, there has recently been an increase in villa prices. This trend is expected to continue in the years ahead. This is why acquiring a buy-to-invest villa in Dubai is one of the steps achieving strong return. The owners of these properties can receive passive rental income and capitalise on capital gains as well.

A couple of years ago, apartments were thought to be hot properties in the market. But compared to villas, their rise in terms of price and demand has suffered a lot, especially since the start of the COVID-19 pandemic. Recent trends have shown a slight but steady improvement, with apartment prices growing in double digits.

Choosing a suitable location

Location is crucial when it comes to housing investments. This factor affects the initial costs, ROI, and future opportunities. So, investors need to be smart about choosing a community. Carefully research the neighbourhood, property prices, and current and future developments in the area before making a purchase decision.

Even if the community is located far away from central parts of the city, but it has a large number of off-plan units, investing in local real estate will be a smart move. Let’s use South Dubai as an example. The area has seen a significant improvement in terms of infrastructure development and demand growth since Expo 2020 Dubai was hosted here. Additionally, the new District 2020 community will further enhance its value. Investors have already begun to show a keen interest in this project.

Investments in forward-looking projects

New housing estates, especially in a developed metropolitan area like Dubai, are currently being developed in accordance with the principles of sustainability and energy efficiency. Now, major construction companies are making a conscious effort to use eco-friendly methods and natural resources to reduce their carbon footprint. These projects have the best growth potential in terms of demand and cost.

This is why a lot of experts recommend choosing between the most promising projects for anyone who plans to purchase buy-to-invest real estate. These investments will bring fruitful results in the long run.

Receiving expert assistance

It’s safe to say that Dubai has become a goldmine for property investors. However, in order to make a profitable investment in its constantly growing and broadening market, the transaction process requires maximum responsibility. The best decision an investor (beginner or experienced) can make is to cooperate with professionals who are familiar with the local real estate industry from the inside.

These professionals work for AX Capital.  A number of buyer categories can be approached by agency representatives. They choose a unit that will fully match all the key parameters after thoroughly examining the preferences and capacities of each of their clients. The company’s specialists will assist their clients in making an investment decision they won’t regret because they are aware of the trends occurring in the Dubai market.

In addition to assistance with the selection of real estate, AX Capital clients can count on full support during the transaction process and high-quality after-sales service.

Marco Polo
Marco Polo
Marco Polo is the admin of He is dedicated to provide informative news about all kind of business, finance, technology, digital marketing, real estate etc.

Most Popular